• Recent coverage in July 2026 highlighted that Macy’s is now rated a Zacks Rank #1 (Strong Buy), with earnings estimates revised higher and valuation metrics such as P/E, P/B and P/CF suggesting the stock is trading at an attractive discount to industry peers.
• At the same time, Macy’s appointment of Alexandre Choueiri to lead Bluemercury is reshaping how investors view its presence in prestige beauty and the company’s overall business mix.
• We’ll now examine how Macy’s perceived undervaluation, highlighted by stronger earnings estimates, may influence its existing investment narrative and risk profile.

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Macy's Investment Narrative Recap

To own Macy’s today, you need to believe its omni-channel model, store optimization, and higher-margin concepts like Bluemercury can support steady earnings despite ongoing pressure on physical retail and discretionary spending. The latest Zacks Rank #1 rating and higher earnings estimates reinforce the near term earnings story and perceived undervaluation, but do not remove execution risk around margins and consumer demand, which remain the key short term catalyst and the biggest risk.

The most relevant recent development is Macy’s inclusion on the Zacks Rank #1 income stocks list, backed by a 4.3% upward revision in current year earnings estimates and a 3.1% dividend yield versus a 2.8% industry average. This aligns with the narrative that the market may still be discounting Macy’s earnings power, even after a strong one year total return, and keeps the spotlight on whether cash returns to shareholders are sustainable if macro or tariff pressures intensify.

Yet even with stronger earnings estimates and a higher dividend yield, investors should be aware of the lingering risk that persistent e-commerce shifts could still...

Macy's narrative projects $20.7 billion revenue and $664.5 million earnings by 2029. This assumes revenues decline by 3.0% per year and earnings decrease slightly by about $2.5 million from $667.0 million today.

Uncover how Macy's forecasts yield a $22.77 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming roughly flat revenue near US$22.6 billion and earnings around US$660 million, so if you believe omni-channel investments and beauty leadership can offset e-commerce and traffic risks more than consensus expects, you may see a very different opportunity here than those focused on the baseline narrative.

Explore 5 other fair value estimates on Macy's - why the stock might be worth as much as 62% more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Macy's research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Macy's research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Macy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.